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Should come to $299 a month with a $1,000 down. Now since the first months payment is included in the $1,000 in reality I'm only putting $700 towards my cap cost correct? So if I am techincally only putting $700 towards the cap cost then the monthly price would go up by $9 making a grand total of $308 per month...right?

I don't know how many months you are talking about, but what about the acquisition and DMV fees? Sounds to me like, with $1k due at signing, you aren't applying anything to the car itself. If paying first month up front, you are actually adding several hundred bucks to your cap cost, no?

Ok now I'm officially lost. It's 36 months, 12,000 miles. If I put all those numbers in the lease calculator (including $1,000 down) I get

Total Loan Amount $28,427 Monthly Payment (tax included) $299

I thought that the DMV fees and the first month had to be paid up front? I would need to put down at least $700 to pay those off to drive off. If I rolled those in wouldn't my monthly payment go up? Or are you saying I should negotiate the price of the car lower?

Ok I see what your saying. The final neg. price would be $28402. You would have to add DMV ($450) and ACQUISITION ($595) fee to this which would make the cap cost $29,427.

I want to pay first month, DMV fees which is $730 and add the $280 as a cap reduction totaling $1000 down. I'm doing this to get my payment to be $300, I don't want to go much higher then that.

That's what I'm asking though I want to put $1,000 down, the first month is going to have to come out of that or they are going to roll it into the payments so technically I'm only putting $700 down right? Which means at that negotiated price, my monthly is going to go up by $9 correct?

Well, I THINK you could tack the first month onto the end. I could be wrong. So, in other words, instead of first month up front and 35 payments, you actually make 36 payments, starting 30 days after you get into the car. Again, I could be totally off base here, but worth looking into.

In any case, yes, $300 additional cap cost should be roughly $9.

I haven't run your numbers through a lease calculator, but don't forget tax on the monthly payment.

edit: oK, ran it through calculator. Looks like you are right on the money. It is still telling me, however, that you should be at $300/mo with tax after just $1k down. That's probably calculating like I did above, that you would make 36 payments, not the first payment up front.

Getting close to leasing a car, but every calculator / formula I use produces different results... so I figured I'd just ask.

I've tried about 5 different ones, as well as creating my own based on formulas found here, on bankrate, and one or two others.... all end up different.

So - if anyone can point me to a true formula, that'll really help!

Well... that's the one I used just before posting!

FWIW that gave me a monthly (including taxes) of 356.92; Edmunds gave me a monthly including taxes of 282.51. Obviously a pretty significant difference!

Numbers are 29,625 msrp, 27,625 cap cost, 36 months, .6 res value, .0016.

I'm sure I'm messed something up... not sure what it is though!

??? what are you entering into edmunds' calculator? I entered what you listed above, excluded acquisition and DMV since you didn't list any, used 17775 as the residual, and assumed 7% tax. It spits out $382/mo for 36 mos.

Hi again - "> 27,625 cap cost, 36 months, .6 res value (17775 based on MSRP) (I see Edmunds doesn't provide for entering MSRP?), .0016 money factor with 2,000 down. I get $338, tax included!

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I was given a quote for a '13 Acadia Denali of $575 w/tax in NJ but after further research I am questioning the deal. I called the dealer and seem to be getting a lot of double talk so I want to confirm my calculations to make sure I have a leg to stand on. Thanks in advance...

Here's the deal:

MSRP $48795 Base Cap Cost $47564 Rebates $4000 Additional Fees (Acq, Title, etc) $1521 Residual (57%) $27813 Money Factor .00077 Term 39 months sales Tax 7%

Monthly Payment $500 plus tax--NOT SURE WHAT PROPER AMOUNT IS ($34??)

The dealer claims they can't get to my number but are not disputing the money factor or residual. They keep talking about the sales tax but don't seem to be making sense to me. Even if sales tax is $34 month I'm still only at $534 not $575. In NJ, is sales tax paid by the lessee on the vehicle upfront? I didn't think it was but maybe I'm wrong and need to add additional money to cost of the vehicle???

Need more details. I have no idea what base cap cost means as it is not a term defined in the FRBB's Reg M. I would ask the dealer for their lease worksheet. It will tell you everything you need to know and then some.

Here's what is missing...

Selling Price Amounts capitalized in the lease Gross Cap Cost Taxable and Non-Taxable Cap Reductions Adjusted Cap

If you can provide this information, I can compute your lease payment to the penny.

NJ computes sales tax based on the total of the taxable payments just like in Ohio.

The worksheet they gave me is useless as it doesn't list the items as you requested above. I will try to answer your questions the best I can.

Selling Price is $47564 (they told me they reduced the MSRP to this amount) GM is offering $4000 in rebates ( I think this is referred to as Cap Adjustment)So this also needs to be factored into the final selling price. I don't know how to answer the taxable and non-taxable cap reductions, sorry All the following fees are to rolled into the monthly payments:

Bank Fee $595 Window Etch $239 Tire Fee 7.50 Title $401 Doc Fee $279

That's all the info I have so hopefully you can calculate it from this info and the other info in the previous post.

ok, I received the worksheet from the dealer and now they found an even lower money factor. here is the info.

MSRP 48795 Base Residual Value 27813

CAPITALIZED COST- Agreed Upon Value (Base Cap Cost) 47564 Upfront Sales Tax/Tax on Cash Cap Cost Reduction 1575 Acq Fee 595 Other 239 Gross Cap Cost 49974 Rebates (cap cost reduction) 2762 Adjusted Cap Cost 47211

Monthly payment $540 and that should include tax

It appears that they are now not giving me the full $4000 GM rebate. These guys are driving me nuts.

"Upfront Sales Tax/Tax on Cash Cap Cost Reduction 1575"

I become very confused :confuse: Upfront Sales Tax??? Upfront means that it's paid at lease signing. Yet, you show that the "Upfront" Sales tax and tax on the cash cap cost reduction ($1575) is capitalized in the lease as the gross cap is $49,973. I assume you mean that the tax is paid to NJ "upfront" but is capped in the lease. It might be helpful if you could itemize what you're paying upfront.

You also stated...

"I received the worksheet from the dealer and now they found an even lower money factor."

Is that lower than the 0.00077 that you stated previously If so, what's the new lower money factor? 0.00075?

Here's what I get given the information you provided...

MSRP 48795.00 agreed upon value or sell price 47564.00 total NJ state sales tax (7.00%) 1578.10 acq fee 595.00 Other 239.00 gross cap 49976.10 cap reduction 2762.00 adj.cap 47214.10 residual (57% x MSRP) 27813.15 money factor 0.00077 term 39 payment including tax 555.23

Can't imagine how they get a payment of $520 including tax. Something just doesn't seem right. Honestly, the only way I can help you would be if you emailed me your dealer's lease worksheet. Otherwise, I'm guessing.

It just occurred to me that you're leasing a GMC Acadia Denali. If you're using Ally Bank as the fund provider, you should have been quoted an interest rate and not a money factor as Ally Bank does not use a money factor. I beieve the current rate is 1.85%. And, unless it has changed, Ally's acq fee is $795. That may be part of the problem.

Like Ohio, NJ tax is computed on the sum of the taxable payments. The tax can either be paid upfront by the lessee or the tax can be capitalized in the lease wherein interest is levied on the tax as it would be a part of the adjusted capitalized cost. If your cost of money is low compared with savings rates, it's best to capitalize the tax from a financial perspective.

Because any lease I've done, I can figure out the base payment and then simply add 7% on top. If total use tax were calculated, then added to the payment prior to adding the interest, wouldn't that give me a very different net payment?

I'm positive. Most States compute the tax on the payment streams for which tax is payable as payments are received. However, some States like Ohio and NJ compute tax on the sum of the taxable payments. A taxable payment is computed and that, in turn, is multiplied by the lease term (months). This is the tax base upon which the tax rate is levied. NY does something similar. I've written some articles about this on my website. You may want to look at the following article...

I'm not sure what you mean by net payment. The sum of the taxable payments is used only for purposes of establishing the tax base and levying the tax. The actual tax can be capped in the lease. Naturally, the taxable payment will be different than the regular lease payment if tax is capped.

## Comments

10,837I'm not a leasing expert - I just moderate the forums. Hopefully one of our knowledgeable members will drop by and let you know how you did.

MODERATORNeed help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.

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0 · Like LOL242013 ACURA ILX PREMIUM 6 SPEED

MSRP $30095

NEG PRICE $28402

NY TAX 8.75%

AQUISITION FEE $595

DMV FEES $430.27

RESIDUAL 18057

MF .00024

Should come to $299 a month with a $1,000 down. Now since the first months payment is included in the $1,000 in reality I'm only putting $700 towards my cap cost correct? So if I am techincally only putting $700 towards the cap cost then the monthly price would go up by $9 making a grand total of $308 per month...right?

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0 · Like LOL17,202'13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

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0 · Like LOL24Total Loan Amount $28,427

Monthly Payment (tax included) $299

I thought that the DMV fees and the first month had to be paid up front? I would need to put down at least $700 to pay those off to drive off. If I rolled those in wouldn't my monthly payment go up? Or are you saying I should negotiate the price of the car lower?

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0 · Like LOL24I want to pay first month, DMV fees which is $730 and add the $280 as a cap reduction totaling $1000 down. I'm doing this to get my payment to be $300, I don't want to go much higher then that.

That's what I'm asking though I want to put $1,000 down, the first month is going to have to come out of that or they are going to roll it into the payments so technically I'm only putting $700 down right? Which means at that negotiated price, my monthly is going to go up by $9 correct?

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0 · Like LOL17,202In any case, yes, $300 additional cap cost should be roughly $9.

I haven't run your numbers through a lease calculator, but don't forget tax on the monthly payment.

edit: oK, ran it through calculator. Looks like you are right on the money. It is still telling me, however, that you should be at $300/mo with tax after just $1k down. That's probably calculating like I did above, that you would make 36 payments, not the first payment up front.

Heckuva deal on a $30k car.

'13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

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0 · Like LOL24- Spam
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0 · Like LOL12I've tried about 5 different ones, as well as creating my own based on formulas found here, on bankrate, and one or two others.... all end up different.

So - if anyone can point me to a true formula, that'll really help!

thanks,

Andrew

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0 · Like LOL27,896I do it on a spreadsheet that my then 12-yr-old son made for me...

MODERATORPrices Paid, Lease Questions, SUVs

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0 · Like LOL12Well... that's the one I used just before posting!

FWIW that gave me a monthly (including taxes) of 356.92; Edmunds gave me a monthly including taxes of 282.51. Obviously a pretty significant difference!

Numbers are 29,625 msrp, 27,625 cap cost, 36 months, .6 res value, .0016.

I'm sure I'm messed something up... not sure what it is though!

thanks,

Andrew

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0 · Like LOL27,896MODERATORPrices Paid, Lease Questions, SUVs

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0 · Like LOL12thanks

A

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0 · Like LOL17,202what are you entering into edmunds' calculator?

I entered what you listed above, excluded acquisition and DMV since you didn't list any, used 17775 as the residual, and assumed 7% tax. It spits out $382/mo for 36 mos.

'13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

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0 · Like LOL12">

27,625 cap cost, 36 months, .6 res value (17775 based on MSRP) (I see Edmunds doesn't provide for entering MSRP?), .0016 money factor with 2,000 down. I get $338, tax included!

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0 · Like LOL10,837MODERATORNeed help navigating? kirstie_h@edmunds.com - or send a private message by clicking on my name.

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0 · Like LOL12Well, then... thanks for the awesome pie we had on Saturday, too!

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0 · Like LOL27,896I did a straight calculation, based on the parameters you gave me...

Cap cost - residual = depreciation which is then divided by the lease term in months..(Cap cost+residual) X money factor = monthly finance charge.Monthly depreciation + monthly finance charge = lease payment.Taxes vary depending on state and rate..

MODERATORPrices Paid, Lease Questions, SUVs

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0 · Like LOL17,202'13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

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0 · Like LOL40,140ModeratorNeed help navigating? stever@edmunds.com - or send a private message by clicking on my name.

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0 · Like LOL9Here's the deal:

MSRP $48795

Base Cap Cost $47564

Rebates $4000

Additional Fees (Acq, Title, etc) $1521

Residual (57%) $27813

Money Factor .00077

Term 39 months

sales Tax 7%

Monthly Payment $500 plus tax--NOT SURE WHAT PROPER AMOUNT IS ($34??)

The dealer claims they can't get to my number but are not disputing the money factor or residual. They keep talking about the sales tax but don't seem to be making sense to me. Even if sales tax is $34 month I'm still only at $534 not $575. In NJ, is sales tax paid by the lessee on the vehicle upfront? I didn't think it was but maybe I'm wrong and need to add additional money to cost of the vehicle???

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0 · Like LOL603Need more details. I have no idea what base cap cost means as it is not a term defined in the FRBB's Reg M. I would ask the dealer for their lease worksheet. It will tell you everything you need to know and then some.

Here's what is missing...

Selling Price

Amounts capitalized in the lease

Gross Cap Cost

Taxable and Non-Taxable Cap Reductions

Adjusted Cap

If you can provide this information, I can compute your lease payment to the penny.

NJ computes sales tax based on the total of the taxable payments just like in Ohio.

J. Clark

TheAutoLeaseGeek

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0 · Like LOL9Selling Price is $47564 (they told me they reduced the MSRP to this amount)

GM is offering $4000 in rebates ( I think this is referred to as Cap Adjustment)So this also needs to be factored into the final selling price.

I don't know how to answer the taxable and non-taxable cap reductions, sorry

All the following fees are to rolled into the monthly payments:

Bank Fee $595

Window Etch $239

Tire Fee 7.50

Title $401

Doc Fee $279

That's all the info I have so hopefully you can calculate it from this info and the other info in the previous post.

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0 · Like LOL9MSRP 48795

Base Residual Value 27813

CAPITALIZED COST-

Agreed Upon Value (Base Cap Cost) 47564

Upfront Sales Tax/Tax on Cash Cap Cost Reduction 1575

Acq Fee 595

Other 239

Gross Cap Cost 49974

Rebates (cap cost reduction) 2762

Adjusted Cap Cost 47211

Monthly payment $540 and that should include tax

It appears that they are now not giving me the full $4000 GM rebate. These guys are driving me nuts.

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0 · Like LOL603"Upfront Sales Tax/Tax on Cash Cap Cost Reduction 1575"

I become very confused :confuse: Upfront Sales Tax??? Upfront means that it's paid at lease signing. Yet, you show that the "Upfront" Sales tax and tax on the cash cap cost reduction ($1575) is capitalized in the lease as the gross cap is $49,973. I assume you mean that the tax is paid to NJ "upfront" but is capped in the lease. It might be helpful if you could itemize what you're paying upfront.

You also stated...

"I received the worksheet from the dealer and now they found an even lower money factor."

Is that lower than the 0.00077 that you stated previously If so, what's the new lower money factor? 0.00075?

Here's what I get given the information you provided...

MSRP 48795.00

agreed upon value or sell price 47564.00

total NJ state sales tax (7.00%) 1578.10

acq fee 595.00

Other 239.00

gross cap 49976.10

cap reduction 2762.00

adj.cap 47214.10

residual (57% x MSRP) 27813.15

money factor 0.00077

term 39

payment including tax 555.23Can't imagine how they get a payment of $520 including tax. Something just doesn't seem right. Honestly, the only way I can help you would be if you emailed me your dealer's lease worksheet. Otherwise, I'm guessing.

John

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0 · Like LOL603John

TheAutoLeaseGeek

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0 · Like LOL4Do we pay tax upfront or as part of the monthly lease payment?

I'm in NJ where tax is (i think) paid on total monthly payment but the local acura dealership quoted me a price w/ tax and inception fees upfront.

Also- does the lessee pay the bank fees?

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0 · Like LOL17,202And, yes, you pay bank fee (also called acquisition fee).

You CAN pay tax up front... but I can't see the point. It doesn't save you any money since interest is not charged on the tax.

'13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

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0 · Like LOL603J. Clark

TheAutoLeaseGeek

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0 · Like LOL17,202Because any lease I've done, I can figure out the base payment and then simply add 7% on top. If total use tax were calculated, then added to the payment prior to adding the interest, wouldn't that give me a very different net payment?

EDIT:Found this resource that tells me the tax is not charged interest: http://www.leasetips.com/salestax.htm'13 Stang GT; '86 Benz 300E; '98 Volvo S70; '12 Leaf; '14 Town&Country

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0 · Like LOL603https://autoleasegeek.com/457/457

Questions? Please let me know.

John

I'm not sure what you mean by net payment. The sum of the taxable payments is used only for purposes of establishing the tax base and levying the tax. The actual tax can be capped in the lease. Naturally, the taxable payment will be different than the regular lease payment if tax is capped.

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0 · Like LOL